In recent times, the role of trade and commerce has gone beyond economic considerations. The requirement to enter into agreements and contracts concerning business and enterprise transactions has now become a significant feature of everyday life. As we keep getting busier with personal and professional commitments, we are increasingly relying on the other person to get some matters accomplished. The legal professionals helping busy businessmen are a boon for them to make their transactions easy and seamless. Dubai is renowned for its global trade presence. Most investors live abroad or travel pretty often due to their commitments. In this scenario, the presence of a legal representative to look after your property, vehicle, etc., related transactions and free you from these responsibilities can make your business easy and seamless.
Power of Attorney is a legal set of rules that grants some powers to an appointed agent who acts on your behalf in business, vehicle, property, and other such transactions if you live abroad or find it challenging to travel every time to Dubai in case of legal signatures and related formalities. There are two major types of POAs: general POA and specific POA. In this article, we delve into the dynamic and steps towards granting powers of attorney under the general POA.
What is a General Power Of Attorney, and What Are the Powers It Can Assign?
As the name suggests, under this category of POA, the powers granted to the legally assigned agents are general in nature and do not deal with matters that require specific powers. When the subject matter is not general and involves certain restrictions while the paperwork is being processed, it is not considered a general power of attorney and is popularly known as a limited power of attorney. The power of attorney is chargeable, and paying the stamp duty is mandatory. Let’s shed some light on the powers you can assign to your agent under the former –
- Acquisition or selling of property in Dubai while being overseas including other real estate transactions.
- Establishment of a new business or company.
- As a signatory for important papers and other legal documents.
- Your representative before courts, banks, government bodies, and other essential places where your presence is mandatory otherwise.
- Act on your behalf before Etisalat, DEWA, and other similar utility service providers.
A Comprehensive Guide For General POA
Now that you know that an ‘Agent’ or ‘Attorney-in-Fact’ gets access to full power from you (Principal), we will understand how powers of attorney differ for companies and individuals and when you need such a legal representative.
For Companies
The organizations based in Dubai also have access to the two types of powers of attorney. As the name suggests, the general POA gives access to the General Manager of the organization to carry out routine business activities and transactions seamlessly and ensure an uninterrupted execution of organizational tasks on the behalf of the owner. The detailed legal paper specifies the powers of a General Manager.
For Individuals
For individuals also the essence of the general POA goes the same as it is for the companies. You can appoint an agent on your behalf to look after seamless governmental and business proceedings on your behalf in Dubai while you are out of the country.
Let’s Understand How These Powers Can Aid You
The general power of attorney is among the most widely used governmental documents in Dubai due to the fact that the Principal gets access to a smooth functioning without being present –
- When You Live Outside Dubai – If you reside overseas or travel frequently due to your personal or professional commitments, and you own assets in Dubai like vehicles, real-estate, or business-related possessions, you can grant a local agent with the power of attorney to act as your legal representative wherever required.
- Terminal/Mental Illness – If somebody is ill and has a very small chance of recovery, the onlooker may utilize the medical power of attorney document to get a legal representative to make the related decisions on his behalf. These may involve when and how the crucial treatment is received.
- Choice Of Agent – Considering the powers infested in this legal document, it’s crucial that you choose an agent who you can trust without a doubt, and he must be absolutely sound-minded. You should be sure that the person you choose to act as your agent must make the best and most honest decisions that are in your best interest.
- Rely On The Expert – While you grant the powers of attorney to a trusted agent, it’s crucial that you take the advice of an expert lawyer. This is necessary because they have in-depth knowledge about what’s right and will give you the best suggestion to have a strong power of attorney for seamless business functioning.
Important Takeaways
Let’s explore the critical elements of a general POA –
- A second agent must ideally be included in your document in case the first one you mention is incapable of carrying the responsibilities due to some reason.
- The document of power of attorney is taken over by the will as after the death of the Principal, the powers of an agent are declared as void.
- The document is always open to amendments according to any changes in the circumstances.
- This piece of the document does not imply the Principal is powerless. It simply grants the powers to his agent to act on his behalf.
- The Principal is allowed to grant power of attorney to two agents but must avoid that unless it’s non-negotiable, as it tends to slow down the process.
General POA in Dubai is essential for you if you do not spend much time in the city and are living abroad. This is because it infests the powers of your agent to make all the formalities and keep them available on your behalf whenever necessary for the smooth execution of commercial or personal transactions in Dubai.